C150237 Increase Approval Letter

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Penrose Water District Consent Agenda Item 4a. November 19-20,2014 Board Meeting(Updated November 21, 2014) Page 3 of 4 Loan Increase The District has recently had its DOLA funding increased by $300k from the original $500k grant in response to the additional costs incurred by the project, and is requesting additional loan funding from the CWCB. Through the course of the project there has been the need to satisfy the Colorado Division of Water Resources relative to the District's augmentation plan for the water rights purchased, including the need to install a flow monitoring gage at the headgate of the Pleasant Valley Ditch. Therefore, the District will be pursuing the design and construction of the flow monitoring structure, which is estimated to cost $215,000. TABLE 1: UPDATED PROJECT COST SUMMARY Original Project Cost $ 9,730,000 Additional Project Elements/Increases $ 237,039 Monitoring Guage $ 215,000 Water Rights Et Storage $ 567,061 Engineering $ 200,000 Revised Project Cost $ 10,949,100 Schedule: Construction activities are ongoing. Project completion is expected in Spring of 2015. Financial Analysis The District's interest rate is 3.25% for a 30-year repayment term based on the municipal low-income interest rate applicable at the time of original loan approval. TABLE 2: FINANCIAL SUMMARY Original Approval New Request Project Cost _ $ 9,730,000 $ 10,949,100 DOLA _ $ 500,000 800,000 District Contribution $ 473,000 $ 482,100 CWCB Loan $ 8,757,000 $ 9,667,000 Loan with service fee $ 8,844,570 $ 9,763,670 Loan Payment $ 461,334 $ 514,367 Loan Payment with Reserve $ 507,467 $ 565,804 Per Tap Cost of Loan (1,870 Equiv. Taps) $ 23 $ 25 Creditworthiness: The District has no other debt.